The Simandou iron-ore project in Guinea has finalized a USD 15 billion transaction, potentially the largest global iron-ore development. Legal advice was provided by notable international law firms, with major stakeholders, including Rio Tinto and Chinese entities involved. The project includes extensive infrastructure for iron exports, reflecting a decade of complex negotiations and international collaboration.
The Simandou iron-ore development in Guinea, recognized as potentially the largest of its kind globally, has successfully concluded a significant USD 15 billion transaction. This announcement was made on August 7, following Rio Tinto’s earlier confirmation on July 16 that all pre-closing conditions involving Chinese and Guinean stakeholders were fulfilled. The project includes the construction of substantial rail and port infrastructure, integral to the site’s operational success.
International legal counsel was provided by multiple firms: Watson Farley & Williams advised the Guinean government, DLA Piper represented the Chinese state-owned Chalco Iron Ore Holdings, and Hogan Lovells supported Baowu Group. This landmark project is one of the largest greenfield combined mine and infrastructure ventures worldwide, highlighting extensive international collaboration and negotiations over more than a decade.
The initiative aims to exploit four high-grade iron-ore blocks and will involve the construction of a 600-kilometre multipurpose rail line and port facilities. This infrastructure is anticipated to facilitate iron exports of up to 120 million tonnes annually. Ownership and management of the rail and port facilities will be handled by Compagnie du Transguinéen, with equity stakes shared by several key stakeholders: Guinea, a Chinese consortium led by Baowu Group, Simfer Jersey (a joint venture between Rio Tinto and a Chalco-led consortium), and the Winning Consortium Simandou (WCS) backed by Chinese and Guinean investors.
The legal advisory team from Watson Farley & Williams, including Dubai projects partner Alhassane Barry, worked collaboratively with partners from various specialties. DLA Piper’s team, led by Hong Kong-based consultants Carolyn Dong and Russell Wilkinson, facilitated the processes for Chalco. Meanwhile, Hogan Lovells’ representation for Baowu was directed by Liang Xu in Beijing, with additional advice from Guinean legal firm Thiam & Associés, led by managing partner Baba Hady Thia.
Other firms involved in the transaction included Kabélé Law Group and Norton Rose Fulbright, representing WCS, while Simfer received guidance from Clifford Chance, Linklaters, Allens, and ADNA. Additionally, Glencore, a prominent mining company, faced a USD 2.3 million fine from Swiss authorities for bribery activities in Africa during the same month, reflecting ongoing legal scrutiny in the international mining sector.
The successful closure of the Simandou iron-ore development marks a significant milestone in international mining investments, reflecting complex legal negotiations and international collaboration. With major stakeholders involved and substantial infrastructure development poised to enhance iron export capabilities, this project highlights the strategic importance of such ventures in global resource management. The legal and financial oversight provided by multiple international law firms underscores the project’s complexity and the regulatory challenges faced by mining companies.
Original Source: www.africanlawbusiness.com
